Other Financing Options
If, after considering you for all federal and state aid, you still have
remaining eligibility, the college will usually award their own sources of
financial aid. The college award is normally additional grant funds.
Many colleges now offer some type of merit scholarship. Merit scholarships are
based on the student’s academic ability not on financial aid eligibility. Most
merit scholarships are based on grades and SAT/ACT scores. You should contact
the admission office and ask the following questions:
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What types of scholarships do you offer and what are the dollar amounts?
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What are the criteria for the scholarships?
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How many of them do you offer?
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If I meet the criteria am I guaranteed to get one?
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What you need to do to keep the scholarship?
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What happens to the scholarship if I fail to meet the scholarship criteria?
Most colleges offer a payment plan usually administered by Tuition Management
Systems (TMS), or Academic Management Systems (AMS). These plans allow you to
spread you payment out over a specified number of months. Typically these
companies charge you a one-time enrollment fee. There is no interest or
additional fees charged. To get information regarding payment plans at the
college contact the Bursar's Office.
Financing Options
Alternative loans are private loans for the student that are above and beyond
the Federal Stafford Loan. Many lenders offer these types of loans and the
terms of the loan can be very different as well. Most loans are in the
student's name, but they require a credit worthy co-signer. Students usually
don't make any loan payments until 6 months after graduation. The repayment
period is often 15 years. Students are eligible to borrow the full cost of
attendance minus any financial aid they are awarded. These loans are usually
earning interest while the student is enrolled. Pay particular attention to how
earned interest is applied to the loan.
The Rhode Island Student Loan Authority (RISLA) offers 2 types of alternative
loans for students; the College Bound Loan and the RI Family Education
Loan. To get details on these loans contact the College Planning Center at
736-3170.
Parents
PLUS - Parent Loan for Undergraduate Students
These loans are available to parents of dependent undergraduate students, and
have a variable interest rate by year that is capped at 9%. Unlike student
loans, PLUS loan payments cannot be deferred. Loan repayment begins 60 days
after the second disbursement. Parents can borrow up to the cost of education
minus any financial aid that the student has received. The Rhode Island Student
Loan Authority (RISLA) offers an Advantage PLUS with an interest rate a full 1%
lower then the published federal rate. To apply now or obtain additional information, please visit PlusLoan.com or
call the College Planning Center of Rhode Island at (401) 736-3170.
There are advantages and disadvantages to using a home equity loan to finance an
education. The advantage is that home equity loans are generally tax
deductible. The disadvantage is that if you borrow 4 years worth of
tuition, you may have to include the remaining amount of unspent money on your
subsequent FAFSA forms, which will affect your eligibility for financial aid.